Monday, February 23, 2009
More Debt Problems You Need to be Aware Of
Debt causes inflation, it isn't the only cause, but since we have a "fiat" currency excessive creation of new currency devalues the existing currency. Our government has worked in concert with the Federal Reserve Bank to create almost $1 trillion in new currency in 2008. Here are the numbers from the St. Louis Federal Reserve. This is money already created. In 2009, we should expect to see this number skyrocket due to the bailout money yet to be created from the stimulus bill and bank bailouts. The government is creating a new debt bubble. This is one that will have even more serious consequences than the mortgage bubble that we are now experiencing. This is brought on by having a central bank, in our case the Federal Reserve Bank. Ron Paul has written a simple bill that we need to urge our representatives in Washington to pass that will solve this problem. Go here for more information. Call your congressmen. In the meantime, buy gold, or risk losing your buying power to hyperinflation in the near future.